I'm a little confused about this problem. Could anyone give me an example of how to construct a circular flow diagram? Will they always look the same, or do they sometimes include different traders and different flows of goods/services and money?
Using a circular-flow diagram, identify the flows of goods and services and the flows of dollars for each of the following activities:
a. Sam pays a storekeeper $2 for a half gallon of milk.
b. Sally earns $8 per hour working at a fast food restaurant.
c. Susan spends $12 to see a movie.
d. Stuart receives $20,000 in dividends from his shares in Apple Computer.